|Day's Range||1,295.5 - 1,307.901|
|52 Week Range||1,295.4995 - 1,307.9008|
Gold futures could weaken if the GDP figures show the U.S. economy outperforming the rest of the developed world. Prices could strengthen, however, if traders determine that global economic risks are outweighing U.S. economic strength.
As expected, the last day of this week brings us a correction of the recent movements, especially those on the USD and instruments connected with the USD (commodities).
Investing.com -- Wall Street is set for a cautious opening on Friday ahead of the release of first-quarter data on economic growth that could push the market in either direction.
The Gold markets bounce significantly during the day on Thursday, showing signs of strength again. There are a couple of lines to pay attention to in this general vicinity, so we will be monitoring this market very closely.
If the upside momentum continues then look for the rally to extend into the nearest downtrending Gann angle at $1286.80. Taking out this angle will indicate the buying is getting stronger.
Demand for gold could pick up throughout the session if U.S. stock indexes continue to weaken. Shortly after the U.S. opening, the Dow is down over 200 points as shares of 3M dropped 10% after the company reported earnings that were much lower than analysts had expected.
The S&P; 500 fell 8 points or 0.3% by 9:44 AM ET (13:44 GMT), while the Dow slumped 261 points or 0.9%, but the tech-heavy Nasdaq composite gained 23 points or 0.3%.
Investing.com - Gold prices extended a modest recovery on Thursday, against a backdrop of mixed U.S. data and a stock market consolidating near record highs.
Asian shares were under pressure this morning as disappointing economic data from Germany and South Korea revived concerns over slowing global growth.
The Gold markets found a bit of support during the trading session on Wednesday, as we broke down again but have turned around to form a bit of a hammer. This does raise a lot of questions as to what’s going to happen next, because we are clearly in a major inflection point.
The Dollar Index (DXY) found comfort near a yearly high above 97.70 today, after a raft of strong US earnings in the previous session boosted confidence over the health of the US economy.
Based on the early trade, the direction of the June Comex Gold futures contract is likely to be determined by trader reaction to the long-term uptrending Gann angle at $1274.80.
Gold and silver are trading on the defensive as the dollar is advancing with strength. Copper is defending ground but it looks complicated for precious metals.
Traders are also paying close attention to the stock market and investor demand for risk. As long as investors continue to be willing to chase yields, gold’s gains are likely to remain capped.
Boeing (NYSE:BA) inched up 0.7% on relief that there were no disappointments besides what was already expected in its first-quarter repprt. The company suffered a 21% fall in profit during the first-quarter due to the worldwide grounding of its 737 Max after two deadly crashes. It said it expects an initial financial hit of $1 billion.
If anyone is questioning the Fed’s dovish pivot, take one look at the S&P 500 which suggests the Fed pause is delivering in spades.